What is earlier and postponed retirement?
Your pension plan assumes a standard retirement age. This is the age at which the accrued capital will be available, so you can purchase a lifelong pension.
The legal standard retirement age is now 68. In many pension schemes, this is also the standard retirement age. On your participant portal you can see what your standard retirement age is. The retirement age in your pension scheme, provided by your employer, is usually different from the state pension age. The state pension age is the age at which you receive benefits from the government.
You can choose to retire earlier or later. We call this early retirement (retire earlier) or postponed retirement (retire later). In doing so, you instruct us to make the capital available to purchase your pension earlier or later than the standard retirement age. By adjusting your retirement age, you can ensure that your pension starts in the same month as your state pension.
On your participant portal you can see the effect of early or postponed retirement. To do this, go to the Pension Planner. If you change your retirement age there, we will show you the effect on your expected pension. We also show the effect on your investments. See the section Adjusting your pension age on this website for more information about this.
For whom is earlier or postponed retirement intended?
Earlier or postponed retirement can be useful if you want to retire earlier or later than the standard retirement age in your pension plan.
To assess which retirement age is financially viable, examine the following:
A. The expected total income you will receive after retirement.
This income can consist of:
- AOW, everyone who lives or works in the Netherlands receives a benefit from the government. For more information, go to the SVB website.
- Pension that you accrue with Zwitserleven.
- Pension that you have accrued with other employers.
- Annuities or bank savings.
- Savings or investments.
- Work, if you choose to continue working (part-time) after retirement.
On the participant portal in the Inventory section, you can enter the pension you have accrued with previous employers. It is also possible to enter your own resources such as savings.
Also check on mijnpensioenoverzicht.nl how much pension income you expect and how much your partner, if any, will receive.
B. The income you will need after retirement.
This includes expenses for your home (rent or mortgage), household expenses, transportation (car or public transportation), energy, insurance, leisure and vacation.
On the participant portal you can enter your own expenses in the Inventory section. It is also possible to start from example amounts from the Nibud.
Examining both parts (A: income you receive and B: income you need) will give you a good estimate of your own situation. And you can assess whether or not adjusting your retirement age is right for you.
More useful information can be found on the website: Rondkomen na pensionering | Nibud.
When is earlier or postponed retirement suitable?
There are advantages and disadvantages to an earlier or postponed retirement age. So whether it suits you depends on what you think is important. And on your financial situation now and in the future. First do the research as explained in the section “For whom is earlier or postponed retirement intended?”.
Earlier retirement
Pros
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Your retirement age may better suit your (financial) wishes.
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You will receive your pension income earlier.
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If this is higher, you want to make your retirement age at Zwitserleven equal to the age at which you receive your state pension.
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By making your pension with Zwitserleven start earlier, it aligns with your retirement age in other schemes you may have.
Cons
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Your expected pension income will be lower.
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There may be a gap in your income if the retirement age is lower than your state pension age. You cannot expedite the state pension and you will therefore have to fill any gap yourself.
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There may be a temporary increase in income tax on your pension benefit.
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Your partner’s pension may be lower.
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If you were divorced in the past and your ex-partner is entitled to part of your pension, this part will also start earlier.
Suitable
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If you want to receive your pension income earlier than your standard retirement age.
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If you expect to have sufficient income as per your desired retirement age.
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If your state pension starts earlier than your Zwitserleven pension.
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If you can financially cover the gap that may arise because you do not yet receive your state pension.
Not suitable
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If you expect to have not enough income as per your desired retirement age.
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If you cannot financially cover the gap that may arise because you are not yet receiving state pension.
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If your partner does not agree to advance your retirement age.
Postponed retirement
Pros
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Your retirement age may better suit your (financial) wishes.
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Your expected pension will be higher.
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If your retirement age at Zwitserleven is lower, you want to make it equal to the age at which you receive your state pension.
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By postponing your retirement with Zwitserleven, it aligns with your retirement age in other schemes you may have.
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Your partner’s pension can be higher.
Cons
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You will receive your pension benefit later.
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Because your pension benefit is higher, more income tax is levied. This can also result in a higher tax rate. If you were divorced in the past and your ex-partner is entitled to part of your pension, this part will also start later.
Suitable
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If you want to receive your pension income later than the standard retirement age.
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If you expect to have not enough income as per the standard retirement age.
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If your state pension starts later than your pension with Zwitserleven.
Not suitable
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If you want to retire earlier than the standard retirement age.
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If you expect to have sufficient income as per your standard retirement age.
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If you can financially cover the gap that may arise because you are not yet receiving state pension.
- If you want your pension to start later than 5 years after your state pension date. This is not allowed under the tax rules.
- If your partner does not agree to postpone your retirement age.
How do you arrange earlier or postponed retirement?
Please note!
If you want your pension to take effect earlier or later, you must notify the service desk in good time. As will be indicated below. So it is not sufficient to choose a different retirement age on your participant portal.
Do you really want to retire earlier?
Please inform the service desk 8 to 12 months before your desired retirement date, for example by emailing LS.servicedesk@zwitserleven.nl.
You cannot report earlier. Reporting later could lead to problems. The service desk will send you a letter with a form. You can use this form to record your choice for an earlier retirement date.
After we have received the form for your early retirement date, we will send you a letter with information about your upcoming pension about 7 months before your desired retirement date.
Do you really want to retire later?
Then notify the service desk 6 to 12 months before your standard retirement date, for example by emailing LS.servicedesk@zwitserleven.nl.
You cannot report earlier. Reporting later may lead to problems. The service desk will send you a letter with a form. You can use this form to record your choice for a later retirement date.
After we have received the form for your later retirement date, we will send you a letter with information about your upcoming pension approximately 7 months before your desired retirement date.
Conditions
If you have a partner, your partner must agree to your earlier or postponed retirement.
Your minimum and maximum retirement age depends on the agreements your employer has made with us. You can find this in your pension regulations on your participant portal under My documents.
When is the retirement age automatically advanced or delayed?
The default retirement age in your pension plan is agreed upon with your employer. Zwitserleven does not automatically adjust the retirement age. We only do this if you have instructed us to do so by completing a form you received from the service desk.
Need advice?
We are pleased to assist you with your retirement choices. Those choices can have major financial implications. Our guidance is only about your Zwitserleven Pensioen. Whether a choice is right for you naturally depends on your entire personal situation. Now and in the future. Have you thought about asking an advisor? They can give you an overview of all your financial affairs. And help you make the most appropriate choices.